Credit Card Debt Settlements - How New Bankruptcy Laws Made Debt Settlement More Prevalent

Online, April 28, 2010 (Newswire.com) - New laws have made it harder for an individual to use bankruptcy. Even then if you want to go ahead with this option, you must keep in mind that your credit rating is going to take a major hit. The low credit score stays with you for a minimum of 7 years. With a low credit rating getting help from the financial institutions and banks will be next to impossible for a very long period.

With the growing awareness most of the people want to avoid bankruptcy. However if the debts are a pressing problem in your life you must try to find out what other options are available to you. Keeping this in mind, debt relief options might be a better way of handling the situation. Debt relief is a way in which you come up with a realistic spending budget, get in touch with your creditors and negotiate a workable deal with your creditors.

In case your problem is non repayment in the current circumstances, but previously you have had a good payment history. Then you could persuade your creditors to postpone your debt repayment for a certain span of time.

Using the debt settlement options you can settle your debt yourself. However hiring a professional debt settlement agency to do the paper work and the negotiations will fetch you better results. A debt settlement company will review your debt and they can then determine which one of these is likely to get settled. Credit card debts are the ones which can be usually settled. On the other hand medical debt can be negotiated. However, Mortgage would not be negotiable.

In case your unsecured debt amounts to over 10,000 dollars. The debt settlement agencies might be able to negotiate a waiver of at over 60 % of the total outstanding amount. The rest of the 40 percent can be repaid in easy installments.

These are some of the ways in which you can get rid of your credit card debts without opting for bankruptcy.